Cali Communications reported the figures from its adjusted trial balance and from its multi-step income statement for its first
year of business, which ended on July 31, 2018:
Cali Communications
Income Statement
Year Ended July 31, 2018
Net Sales Revenue 29,400
Cost of Goods Sold 18,900
Gross Profit 10,500
Operating Expenses:
Selling Expenses 1,700
Administrative Expenses 3,600
Total Operating Expenses 5,300
Operating Income 5,200
Other Income and (Expenses)
Interest Expense (50)
Total Other Income and (Expenses) (50)
Net Income (Loss) 5,150
Cash $3,500
Selling Expenses 1,700
Accounts Payable 4,200
Common Stock 8,650
Notes Payable, long-term 900
Merchandise Inventory 1,300
Administrative Expenses 3,600
Cost of Goods Sold 18,900
Equipment, net 12,500
Accrued Liabilities 2,100
Net Sales Revenue 29,400
Accounts Receivable 3,700
Interest Expense 50
Requirement:
Prepare Cali Communications' statement of retained earnings for the year ended July 31, 2018. Assume that there were no dividends declared during the year and that the business began on August 1, 2017. (Enter a "0" for any zero balances. Include only applicable transactions during the period.)
